PhRMA Files Lawsuit To Challenge Washington, D.C., Price Control Law

The Pharmaceutical Research and Manufacturers of America filed suit against the Washington, D.C., government last week alleging that a new price control law on prescription drugs will cut supplies, hinder development and cause a "limitless parade of lawsuits," the Washington Times reports.

D.C. Council member David Catania, sponsor of the legislation, said the law allows residents "affected by excessive prices" to file suit against a drug company if the wholesale price of a patented drug is 30% higher than the drug's price in Canada, Germany, Australia or the United Kingdom. Mayor Anthony Williams signed the legislation into law on Oct. 3 after the council approved it in September, the Times reports.

PhRMA challenged the legislation in U.S. District Court to block its implementation. David Ogden, attorney for PhRMA, called the law "legislation by litigation," adding, "[The law] sounds good, but the effect is to take money ... and transfer it to trial lawyers." In addition, PhRMA said in court papers that the law compares prescription drug prices with those in countries where "government-managed and/or government-provided health care artificially depress prices."

A U.S. District judge rejected a PhRMA request last week for a temporary restraining order to block publication of the law in the D.C. Register (McElhatton, Washington Times, 10/20).